Hi all,
I’m new to CC. I got my son’s award package and the gap is ~$6,000. I plan on paying this for the upcoming year, but if I can’t for some reason, could he still get a loan by himself or would he need me to sign?
TIA
If your son is a US citizen or legal permanent resident, and has filed the FAFSA, he can borrow the standard student loans. Are those in his package already? If they are, then no, he can’t get any more loans on his own. Someone will need to cosign, or you will need to take out a PLUS loan.
He should also plan to work this summer so he can contribute towards the gap.
Next year you might be able to claim an American Opportunity Tax Credit on your tax return if you paid quailfied education expenses (tuition, fees, books) out of pocket in 2016. The credit can be up to $2,500 but if you have no tax liability the max amount that is refundable is $1,000. There are income limits to qualify.
See link below for more information
https://www.irs.gov/uac/American-Opportunity-Tax-Credit:-Questions-and-Answers